Business Briefs: Nov. 20

The Federal Reserve on Wednesday sharply lowered its projections for economic activity this year and next, and signaled that additional interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century.

With the economy forecast to lose traction, or even jolt into reverse, unemployment will move higher, the Fed predicted.

Facing the likelihood of "significant weakness" in the economy, some Fed officials suggested "additional policy easing could well be appropriate at future meetings," according to documents from the Fed's most recent closed-door deliberations on interest rate policy at the end of October.

At that Oct. 29 session, the Fed ratcheted down rates to 1 percent, a level seen only once before in the past half-century.

Many economists predict the Fed will lower rates again at its last meeting of the year on Dec. 16, to help brace the sinking economy.

WASHINGTON

Microsoft dismisses buyout of Yahoo

BELLEVUE — Microsoft Corp. is no longer interested in buying all of Yahoo Inc., CEO Steve Ballmer said Wednesday, though he told shareholders that the company would still be "very open" to a collaboration on Internet search. His comments sent Yahoo shares diving by 19 percent.

Yahoo spurned a $47.5 billion takeover offer from Microsoft in May and later rejected Microsoft's bid to buy only its search engine. Ballmer has said repeatedly of late that the buyout remains off the table, though a search-related deal is possible.

But Wednesday marked the first time he had renewed that stance since the resignation announced this week by Yahoo CEO Jerry Yang, who had resisted Microsoft's overtures.

Yahoo shares rose when Yang said he would step aside, because investors hoped it meant a deal with Microsoft would now be more likely.

OHIO

P&G, Google swap jobs, knowledge

CINCINNATI — The world's largest consumer products company and the online search leader are working together to learn more about each other and about targeting customers.

Procter & Gamble Co. said Wednesday it has done job swaps with Google Inc., and Google employees have been at P&G's Cincinnati headquarters helping with training.

P&G spokeswoman Allison Yang said the company wants to reach more consumers who are increasingly online.

"This is all about learning," she said. "It's about putting consumers in connection with our products in the right spots."

MARYLAND

Panel says ‘superbug' antibiotic is safe

COLLEGE PARK — Federal health advisers on Wednesday said an antibiotic developed by Theravance appears safe and effective for fighting "superbug" bacteria, despite potential risks for pregnant women.

A panel of infection experts voted 21-5 in favor of the drug's benefits and safety.

The Food and Drug Administration is reviewing Theravance's telavancin, a once-daily injection, for patients with hard-to-treat skin infections caused by drug-resistant bacteria. In recent decades, some varieties of germs, including the widespread staph bacteria, have grown immune to popular antibiotics, making them difficult to treat.

Earlier in the week, a review of telavancin by FDA's internal scientists raised questions about its risks of birth defects, and suggested stern warning labels might be needed if it is approved.

Panelists voted 18-5 that there were certain medical situations when the drug's benefits would still outweigh its risks for pregnant women. Three panelists abstained from voting.

Nation

Boeing to slash 800 jobs in Kansas

Boeing Co. is slashing about 27 percent of workers at its defense facility in Wichita, Kan., in response to the delay of the U.S. Air Force tanker replacement program and the end of other work projects.

The Chicago-based company, which makes military aircraft, civilian jetliners and surveillance systems, said Wednesday the reduction of 800 positions at its Integrated Defense Systems facility will affect managers, as well as salaried and hourly workers.